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The convergence of big market trends — recessionary forces, economic uncertainty, cost pressure and digitization — combined with new global and domestic regulatory changes, including Pillar Two, requires many companies to rethink their overall operating model. Tax plays a key role in driving strategy, creating savings toward paying for these efforts, while also shaping the tax department agenda in light of competing demands.
Sixty-two percent of tax leaders are working with management and the board to inform business strategy based on the impact of US and global tax policies, according to the November 2022 PwC Pulse Survey. These considerations go beyond costs. It's about strategizing on approach to identify opportunities earlier and to help manage tax exposures and risks associated with the company’s operations. How? By involving tax early and often.
With Pillar Two on the horizon, it will have an effect on the business as a whole, and having tax in your strategy is crucial to overcoming the challenge. Companies will need to ensure that their current strategy, processes, and technology can support the new requirements that this framework will bring.
Rethinking business operating models from various organizational levels
Expand the tax role to include research, analytics and technologies, and improve how your organization collaborates and performs
Credits associated with research and development can often pay for a portion or all of a transformation effort that includes a technology build, enhancement or customization
Changing operating and business models can have far reaching state and local and value added tax implications and opportunities.